More precisely, in the third quarter, inflation dropped to a little less than 15%, compared with 19% in the second quaretr and 23% in the first.
Sales in volume, however, shrank, even though the decline somewhat slowed down, data from market research company NielsenIQ show. The FMCG market decreased by 1.3% in volume in July-September 2023, while sales were up 13.4% in value, as a result of price increases.
Consumers are facing again a holiday season with a high cost of living. Even though the inflation in the FMCG sector slowed down, the FMCG industry is still experiencing a decline in volumes, mostly visible in hypermarkets and traditional retail, NielsenIQ says.
The number of transactions in supermarkets is on the rise, the same source says, which shows that Romanian consumers are taking more frequent shopping trips and thus trying to control better what they are spending their money on and cut waste (which happens after buying a lot during a shopping trip to a hypermarket, for instance).
The trend was confirmed not long ago by Julien Munch, CEO of Carrefour Romania until recently. He told ZF that amid the inflation, the grocery retail market witnessed a new decline in transactions and in volumes, a trend that will persist for a while. He is now the chief operating officer of the Carrefour’s operation in France.
Under the circumstances, Romanian consumers are going for cheaper products and private labels and this is not the only solution they will use in a time of still high inflation and dwindling purchasing power. Romanians are not alone in this, either.
“Global consumers are prioritizing household expenses, which influences budgets allocated for socialization or meetings outside the house. Spending is redirected from large discretionary purchases outside the home to limited ones, due to the low budgets left after payment of utilities and food (…),” NielsenIQ Romania’s general manager Iulia Pencea says.
More precisely, people are buying only what they really need, which shows little appetite for consumer spending.
(English version by Loredana Fratila-Cristescu)